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The FED is a central bank. Central banks are supposed to implement a country's fiscal policies. They monitor commercial banks to ensure that they maintain sufficient assets, like cash, so as to remain solvent and stable. Central banks also do business, such as currency exchanges and gold transactions, with other central banks. In theory, a central bank should be good for a country, and they might be if it wasn't for the fact that they are not owned or controlled by the government of the country they are serving. Private central banks, including our FED, operate not in the interest of the public good but for profit.

There have been three central banks in our nation's history. The first two, while deceptive and fraudulent, pale in comparison to the scope and size of the fraud being perpetrated by our current FED. What they all have in common is an insidious practice known as "fractional banking."

Fractional banking or fractional lending is the ability to create money from nothing, lend it to the government or someone else and charge interest to boot. The practice evolved before banks existed. Goldsmiths rented out space in their vaults to individuals and merchants for storage of their gold or silver. The goldsmiths gave these "depositors" a certificate that showed the amount of gold stored. These certificates were then used to conduct business.

In time the goldsmiths noticed that the gold in their vaults was rarely withdrawn. Small amounts would move in and out but the large majority never moved. Sensing a profit opportunity, the goldsmiths issued double receipts for the gold, in effect creating money (certificates) from nothing and then lending those certificates (creating debt) to depositors and charging them interest as well.

Since the certificates represented more gold than actually existed, the certificates were "fractionally? backed by gold. Eventually some of these vault operations were transformed into banks and the practice of fractional banking continued.

Keep that fractional banking concept in mind as we examine our first central bank, the First Bank of the United States (BUS). It was created, after bitter dissent in the Congress, in 1791 and chartered for 20 years. A scam not unlike the current FED, the BUS used its control of the currency to defraud the public and establish a legal form of usury. This bank practiced fractional lending at a 10:1 rate, ten dollars of loans for each dollar they had on deposit. This misuse and abuse of their public charter continued for the entire 20 years of their existence. Public outrage over these abuses was such that the charter was not renewed and the bank ceased to exist in 1811.

The war of 1812 left the country in economic chaos, seen by bankers as another opportunity for easy profits. They influenced Congress to charter the second central bank, the Second Bank of the United States (SBUS), in 1816.

The SBUS was more expansive than the BUS. The SBUS sold franchises and literally doubled the number of banks in a short period of time. The country began to boom and move westward, which required money. Using fractional lending at the 10:1 rate, the central bank and their franchises created the debt/money for the expansion.

Things boomed for a while, then the banks decided to shut off the debt/money, citing the need to control inflation. This action on the part of the SBUS caused bankruptcies and foreclosures. The banks then took control of the assets that were used as security against the loans.

Closely examine how the SBUS engineered this cycle of prosperity and depression. The central bank caused inflation by creating debt/money for loans and credit and making these funds readily available. The economy boomed. Then they used the inflation which they created as an excuse to shut off the loans/credit/money.

The resulting shortage of cash caused the economy to falter or slow dramatically and large numbers of business and personal bankruptcies resulted. The central bank then seized the assets used as security for the loans. The wealth created by the borrowers during the boom was then transferred to the central bank during the bust. And you always wondered how the big guys ended up with all the marbles.

Now, who do you think is responsible for all of the ups and downs in our economy over the last 85 years? Think about the depression of the late '20s and all through the '30s. The FED could have pumped lots of debt/money into the market to stimulate the economy and get the country back on track, but did they? No; in fact, they restricted the money supply quite severely. We all know the results that occurred from that action, don't we?

Why would the FED do this? During that period asset values and stocks were at rock bottom prices. Who do you think was buying everything at 10 cents on the dollar? I believe that it is referred to as consolidating the wealth. How many times have they already done this in the last 85 years?

Recently,(Sept. 5,2003) Congressman Ron Paul, who is on the Financial Services Committee, which oversees the entire financial services industry, including the securities, insurance, banking, and housing industries, Rep. Ron Paul of Texas serves as the vice-chairman of the Oversight and Investigations subcommittee that oversees the work of the Federal Reserve, the Treasury, the SEC, and other financial services regulators. This is what he said before the U.S. House of Representatives on Sept. 5th:

"We own the printing press and create as many dollars as we please. These dollars are used to buy federal debt. This allows our debt to be monetized and the spendthrift Congress, of course, finds this a delightful convenience and never complains. As the dollars circulate through our fractional reserve banking system, they expand many times over. With our excess dollars at home, our trading partners are only too happy to accept these dollars in order to sell us their products. Because our dollar is relatively strong compared to other currencies, we can buy foreign products at discounted prices. In other words, we get to create the world's reserve currency at no cost, spend it overseas, and receive manufactured goods in return."

It's called fractional reserve banking, as Congressman Ron Paul pointed out, and all lenders who are part of the Federal Reserve System do the same thing. Only they don't tell you what they do with your note, and that's not full disclosure. Why? Because by law, if the actions of either party to an agreement significantly alter the cost or risk as originally represented, he is obliged to inform the other party. Lenders NEVER tell "borrowers" that their promissory notes are instant cash cows, that they use your note to fund your own loan, or that they incur little risk.

Listen to what Congressman Louis T. McFadden of Pennsylvania stated on the floor of the House of Representatives on May 23, 1933 about the Federal Reserve. Due to his having served as Chairman of the Banking and Currency Committee for more than 10 years, Congressman McFadden was the best posted man on these matters in America and was in a position to speak with authority of the vast ramifications of this gigantic private credit monopoly. Because these speeches are set out in full in the Congressional Record, they carry weight that no amount of condemnation on the part of private individuals could hope to carry.

Congressman Louis McFadden said, "We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the FED. They are not government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers." McFadden was eventually assassinated.

This next quote should stir your heart:

Rothschild Brothers of London (one of the private foreign families that are owners of the Federal Reserve Bank) said, "The few who understand the system will either be so interested in its profits, or so dependent on its favors that there will be no opposition from that class. The great body of people, mentally incapable of comprehending the tremendous advantages will bear its burden without complaint."

Another member of the Rothschild family by the name of Mayer Amschel Bauer said, "give me control of a nation's money and I care not who makes the laws."

Just before he died, Woodrow Wilson is reported to have stated to friends that he had been "deceived", referring to the Federal Reserve Act that had been passed during his Presidency. He said, "I am a most unhappy man. I have betrayed my country. A great industrial Nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the Nation and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the world - no longer a Government of free opinion no longer a Government by conviction and vote of the majority, but a Government by the opinion and duress of small group of dominant men."

On September 5, 2003 Congressman Ron Paul said before the U.S. House of Representatives:

"All great republics throughout history cherished sound money. This meant that the monetary unit was a commodity of honest weight and purity. When money was sound, civilizations were found to be more prosperous and freedom thrived. The less free a society becomes, the greater the likelihood its money is being debased and the economic well-being of its citizens diminished"

And then Congressman Ron Paul goes on to state that:

"Yet here we are today with a purely fiat monetary system, managed almost exclusively by Alan Greenspan. The Founders were well aware of the biblical admonitions against dishonest weights and measures, debased silver, and watered-down wine. The issue of sound money throughout history has been as much a moral issue as an economic or political issue."

We had one President who tried to bring down The Federal Reserve Bank. Because of his efforts, he was assassinated.

--------------------If you want a free lunch, you need to learn how to eat good advice.

Let us first follow the money trail, and show how it connects directly to JFK, and what JFK did to try to help the American people regarding the national debt and banking.

To best explain the money trail, it is easiest to give President Abraham Lincoln's story. Lincoln was president during the American Civil War. The war between the North and the South over the slavery issue. The Yanks against the Confederates.

President Lincoln needed to raise money to fund the Northern Army. There are three ways for government to raise money. Government can tax the people, borrow the money, or government can print the cash and spend the cash.

Lincoln decided to print United States Notes to pay for the war. This way he could avoid taxes and borrowing.

The bankers wanted to profit from the war. The bankers wanted Lincoln to print the cash, give the cash to the bankers for the cost of printing the money. Then the bankers return the cash to the government as a bank loan and require the taxpayers to pay a tax to repay the principle plus interest to the bankers.

Honest Abraham Lincoln said NO to the bankers and was assassinated. Upon his assassination the bankers got their way.

Which Brings us to the Federal Reserve Act of 1913 and the IRS

The government prints a $100 bill called a Federal Reserve Note. The bank gets the $100 of cash for 3? cents. Then the bank lends the $100 back to the government. Now the government has a $100 debt and YOU must pay IRS taxes to repay the bank the $100 plus interest.

For 3? cents the bank can collect 5 to 8 dollars of interest every year. The banks call this good business. This is how we created over a $65 trillion national debt, plus your state, county and city debt.

The bank creates the money and lends it to the government and you must pay taxes to repay the principle plus interest.

According to President Reagan's Grace Commission report, your IRS taxes pays off the National Debt. Not one nickel of your Income Tax goes to pay for any government services. Your Tax dollars goes to the bankers. The bankers then give money to the politicians to ensure that they get elected to enforce a tax on you. Because Of President Reagan's effort to control the Federal Reserve Banking System and the Deficit, assassination was attempted on his life.

The Politician's Reward

If the politicians are loyal to the bankers, they are richly rewarded, if they are not loyal they are kicked out, like Congressman Traficant, or killed. The banker's money controls who is elected and the laws passed and heavily influences the media who needs the bank loans to stay in business.

Back to JFK and Eliminating the National Debt.

On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business. The Christian Law Fellowship has exhaustively researched this matter through the Federal Register and Library of Congress. We can now safely conclude that this Executive Order has never been repealed, amended, or superceded by any subsequent Executive Order. In simple terms, it is still valid.

When President John Fitzgerald Kennedy - the author of Profiles in Courage -signed this Order, it returned to the federal government, specifically the Treasury Department, the Constitutional power to create and issue currency -money - without going through the privately owned Federal Reserve Bank. President Kennedy's Executive Order 11110 [the full text is displayed further below] gave the Treasury Department the explicit authority: "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury." This means that for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation based on the silver bullion physically held there. As a result, more than $4 billion in United States Notes were brought into circulation in $2 and $5 denominations. $10 and $20 United States Notes were never circulated but were being printed by the Treasury Department when Kennedy was assassinated. It appears obvious that President Kennedy knew the Federal Reserve Notes being used as the purported legal currency were contrary to the Constitution of the united States of America.

President John F. Kennedy was simply following President Lincoln and President Andrew Jackson. By JFK issuing the Kennedy dollar, United States Note, the bankers could not get the cash for free and lend it back to the government and profit from the old banking system.

JFK planned on printing enough United States Notes, like President Lincoln, and pay off the national debt and thus ending the personal IRS taxes with no new taxes. JFK's plan to print United States Notes, cash, would have ended the privately owned banking monopoly called the Federal Reserve Bank.

President Kennedy was assassinated on November 22, 1963 and the United States Notes he had issued were immediately taken out of circulation. President Johnson immediately stopped the printing of United States Notes and went back to the banker's system of Federal Reserve Notes ensuring the continuation of the IRS tax and bankers profit. Federal Reserve Notes continued to serve as the legal currency of the nation. According to the United States Secret Service, 99% of all U.S. paper "currency" circulating in 1999 are Federal Reserve Notes.

Kennedy knew that if the silver-backed United States Notes were widely circulated, they would have eliminated the demand for Federal Reserve Notes. This is a very simple matter of economics. The USN was backed by silver and the FRN was not backed by anything of intrinsic value. Executive Order 11110 should have prevented the national debt from reaching its current level (virtually all of the nearly $9 trillion in federal debt has been created since 1963) if LBJ or any subsequent President were to enforce it. It would have almost immediately given the U.S. Government the ability to repay its debt without going to the private Federal Reserve Banks and being charged interest to create new "money". Executive Order 11110 gave the U.S.A. the ability to, once again, create its own money backed by silver and realm value worth something. Executive Order 11110 would have destroyed the profits and control of the private Federal Reserve Bank.

And If JFK Had Lived...

IF President Kennedy had lived, we would be debt free and have no IRS taxes, and no other tax to replace the IRS tax. If he lived most likely we would not have been involved in the Vietnam war. Banker's need a war to run up a deficit and profit from the money creation lending program. History shows that when Europe started this banking system, wars immediately started and bankers lent money to both sides of the war. The banker's money controlled Kings of old, like the IMF controls countries today. JFK's plans would have stopped the bankers from controlling congress and the President of this great nation we love. JFK wanted to return the control back to the people.

JFK planned on paying off the national debt and ending the personal IRS income tax simply by printing US Notes.

Where Would the Wealth Be Now, If??

If John F. Kennedy was successful, $20 trillion of money/wealth the bankers have today would be in the hands of Americans. IF JFK was successful, there would be no need for any income tax or other tax to replace the IRS tax and there would be no federal deficit today. One bullet in the head of President Kennedy keep trillions of dollars in the hands of the bankers.

Bobby Kennedy worked with the President and knew of the plan. Bobby got a bullet also. Ted Kennedy has a voting record that would make any socialist proud following the banker's agenda and he is alive today.

Why did John, Jr. and his Wife Have to Die?

The National Examiner gave evidence that weeks before John Jr. died in a plane crash, John Jr. and his wife Carolyn began telling his friends, [I]"I want to know who killed my father. I want there to be absolutely no doubt." [/I]

John Jr. owned the magazine [I]George[/I]. He was in the perfect position to get out the truth. He and his media staff knew how to investigate.

JFK's son, John Jr. had found out why his father was assassinated and about to spill the beans as he and his wife died in a small plane over the ocean.

Many a pilots think a bomb was planted on his aircraft. Why was he cremated? Catholics bury their dead. Cremation only covers up an explosion.

What is the evidence? If you search, you will find that days before President John F. Kennedy as assassinated, JFK explained that there was a conspiracy that he was going to expose.

Look at US history. Three US Presidents ? Presidents Lincoln, Garfield, McKinley - were assassinated. Each directly opposed the bankers, like John F. Kennedy.

Assassination attempts were made on President Andrew Jackson, who campaigned against today's banking system and won the election by a landslide.

President Reagan threatened to replace Federal Reserve Bank chairman Paul Volcker. Reagan said: "That the Federal Reserve Bank was answerable to no one ? not even the president..." Shortly after Reagan's comment he was shot.

After Reagan recovered he publicly stated Federal Reserve Bank chairman Volcker was doing a "good job." Do you begin to see a pattern and a motive?

A top banker once explained how the banker's money controls the media by advertising and loan money and direct ownership of the media and how the banks control the judges and law enforcement.

Here's a Recent Example

A recent example of this is Congressman Traficant. He exposed the bankers. He called the IRS (the collection agency of the privately owned Federal Reserve Bank) a bunch of thieves. He exposed the bankruptcy of the United States.

Now he is going to jail. He said it was selective prosecution and a conspiracy to put him in jail. On national TV, a juror in Traficant's trial, LeeGlasz said, " No doubt government was out to getTraficant."

Want proof? Go to a coin dealer and ask for a 1963, United States Note. They call this the Kennedy dollar.

--------------------If you want a free lunch, you need to learn how to eat good advice.

There are many in other countries who would say Americans are revolting.

--------------------To call humans 'rational beings' does injustice to the term, 'rational.' Humans are capable of rational thought, but it is not their essence. Humans are animals, beasts with complex brains. Humans, more often than not, utilize their cerebrum to rationalize what their primal instincts, their preconceived notions, and their emotional desires have presented as goals - humans are rationalizing beings.

I just read the whole post. While I do not know too much about the history of the fed, I do understand how the system works today. And I have to say that the author of this article does not have a great handle on monetary economics. A couple of points:

-The article assumes that because the fed does not report ultimately to the prez, it must be trying to abuse its power. There are very good governance reasons to separate the two entities. If the fed did report directly to the prez, then there would be considerably greater opportunities for perversion.

-It also seems to suggest that we would have been better off printing money (as opposed to borrowing) to pay for war. This is utterly absurd. If you need proof, look up Germany, It did exactly this to pay for WWI.

-Forcing banks to maintain 100% reserves would be grossly inefficient when compared to the current system. We would be nowhere near where we are today in terms of economic, techn0logical, and all-around progress without this innovation.

-The same goes for the reserve notes and the gold standard. I know my money is little more than paper, and I still sleep at night.

Ack. I lost track of the other misgivings. Anyway I still appreciate you posting the article. I agree that the banking industry is about as evil as it gets, and do not doubt widespread impropriety But this article lost its way somewhere. Anyone here ever heard of Anthony Sutton? This is the kind of stuff that he has been writing about for years. I tried to read one of his books about banking and the Bolshevik revolution, but got bored by the details. I think he has a book solely about the fed. This might even be what he?s saying (albeit probably in a more informed manner.)

I will not lie, I am no expert on banking and finance, but do have probably a better understanding than the average joe. A good read was "The Mandrake Mechanism", "The History of Money" and a decent story,"I want the world plus 5%", though fiction, painted a picture of what could be happening... I may post them here, though they are quite long.

As far as the gold standard goes I've heard opposing opinions on it. I've read alot of stuff from Ron Paul, IMO one of the only decent American politicians. I like his stance on most things, and I can only assume he has some insight into the banking world(Sat on the banking commitee).. His side of the table argues the gold standard provided a strong, stable currency, and that periods of sustainable growth were seen under it. While the other common arguement is that, like you said, without getting off the gold standard we wouldn't have made the progress we have.

I really don't know what the truth is, though I figure its not at all cut and dry and that no one has all the answers.

Even if we were to go back to the gold standard, I don't think things would improve much, the same people that have all the money now, most likely have all the gold as well. For the most part I think the system is unreformable. And that for any major change it would have to come down. And I don't think that is what the majority of the people want. But I think eventually this will have to happen.

I will post the pieces I mentioned earlier, yes they are long, feel free to read them or not, I found them interesting. But remember these are one side of the issue, I haven't really read much of the other side(s) so feel free to post those if you want.

--------------------If you want a free lunch, you need to learn how to eat good advice.

THE MANDRAKE MECHANISM...What is it? It is the method by which the Federal Reserve creates money out of nothing; the concept of usury as the payment of interest on pretended loans; the true cause of the hidden tax called inflation; the way in which the Fed creates boom-bust cycles.

.........

"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it". -- Congressman Louis T. McFadden in 1932 (Rep. Pa)

"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers -- Congressman Louis T. McFadden (Rep. Pa)

"A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world--no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men." --President Woodrow Wilson

"I have never seen more Senators express discontent with their jobs....I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected." ? John Danforth (R-Mo)

While I appreciate your enthusiasm for the subject, it is not required (much less is it desirable) to cut and paste articles of this length into this forum. A few paragraphs here and there to whet our appetites and pique our interest, okay. But verbiage approaching the length of the Old Testament is overdoing it.

I presume the link at the bottom of your last post takes us to the entire thing? If so, please delete all your posts made after this one that I am replying to, and leave us just the link.